Rogers Defends Health Insurers that Waste Half of Premiums

Who in their right mind would defend bloated bureaucracy and overhead so high it eats up almost 50 percent of every dollar taken in? Why, Rep. Mike Rogers, of course.

The Brighton Republican is lining up to defend health insurance companies selling policies to Michigan residents that spend as little as 52 cents of every premium dollar on health care to policy holders.

The Detroit Free Press, in an article Tuesday, reported that Michigan had tried to wiggle out of a provision in the health care reform act that says insurers must spend 80 cents out of every premium dollar on health care. Only 20 cents can be spent on administration, including multi-million-dollar salaries to their CEOs.

Rick Snyder's administration wanted to phase in the rule, claiming it was so hard to meet that the companies might stop doing business in Michigan. But the Obama administration rejected Michigan's bid for an exemption from the 80-20 rule, saying there are many carriers selling individual policies who meet the rule and that the insurance market would remain stable and competitive.

Rogers, rather than standing up for his constituents who buy health insurance, jumped to defend insurance companies. He didn't explain why it was a good deal for his constituents that up to 48 cents out of every premium dollar they paid is wasted on something besides medical care. But he said it would be bad if companies that suck up money in that way decided to stop selling policies in the state.

According to the Free Press:

"Insurers and their subsidies falling short of spending 80 cents on care, based on 2010 data, were Golden Rule Insurance (United Healthcare), spending 60% of each dollar on care; Time Insurance (Assurant), 65%; Aetna, 70%; Humana, 70%; and World Insurance (American Enterprise) 52%."

How hard is it to meet the 80-20 rule? Blue Cross Blue Shield of Michigan manages to spend 93 percent of each premium dollar on medical care and just 7 percent on administration. For the federal government's Medicare program, the figures are more like 98 percent and 2 percent.

Under the law, companies that spend more than 20 percent of premiums on administration owe rebates to their customers starting in August. The newspaper reported that "rebates owed to customers would be Golden Rule, $10 million; Time, $5.3 million; Aetna, $1.7 million; Humana, $1.3 million; Priority Health $200,000, and MEGA at $2.6 million."

When those checks come in the mail, thanks to health care reform, I hope they include a notice that Mike Rogers thinks consumers don't deserve them.

HEALTH CARE COMMUNITY DISCUSSIONS IN LIVINGSTON COUNTY

President-elect Obama and Senator Tom Daschle, nominee for Secretary of Health and Human Services, are asking our help in designing a health care system that provides quality and affordable health care for all Americans. Community Discussions are taking place all over the United States. Our Community Discussion will take place on Tuesday, December 30, 2008 at 7 p.m. in the VFW/American Legion Spirit Center, 10590 Grand River Road, east of Brighton, MI.

This has never happened before in my memory – that is, where a president-elect has reached out to the grassroots and asked for our experiences and what kind of health care system we feel will best serve us. What a difference in governance! President-elect Obama is not asking professional lobbyists from the health insurance industry or Big Pharma, although I’m sure their lobbyists will be working hard for their companies’ interests. He is asking the citizens to respond to him and Senator Daschle directly through these community meetings.

Every participant will be given several opportunities to make their views about health care known. A written report will be submitted online and copies will be given to everyone who supplies their e-mail or street address.

Health care is a concern for every citizen – party affiliation, income, job status or whether you have health insurance now does not matter. The existing system is in such shambles that we must we reform it now. Everyone is encouraged to participate without regard to anything but the need we all have for health care.

Please RSVP to rovinswede@yahoo.com so we can plan for your participation. Light refreshments will be served with coffee and tea service.

A Question for George and Dick?

We were told that Dick Cheney had his pacemaker battery changed a coujple of days ago. A week previously, George Bush had a colonoscopy and polyps removed.

Now both of these procedures are fairly common but they are expensive. They require a sterile environment, expensive equipment and specialists.
There have been plenty of jokes about both men (Did they actually find a heart in Cheney’s chest? Did they find George’s head?) My question about their procedures is not a joke. I want to know who paid.

So George and Dick, did you have these procedures done under the health insurance plan for Federal employees? It’s one of the best plans in the United States and since it’s paid for by the government and covers just about everything one would want in a health care plan with no worries about pre-existing conditions and co-pays, I classify it as socialized medicine as most people would.

Since both the President and Vice-President can easily pay their own bills for these procedures, did they do so or did they take advantage of the socialized medicine plan extended to Federal employees? If they did, they are hypocrites who are taking advantage of a socialized health insurance plan while preaching the virtues of privatized insurance to the rest of us.

I’m willing to bet a twenty that both George and Dick took advantage of the taxpayers. Any takers? Come up with proof that these two rich fellows paid their own medical bills and I’ll send you a twenty dollar bill.